Digital Retailing: Understanding and Communicating with the E-Consumer.
Over the last few years digital retailing and e-commerce have been steadily increasing. And then with the COVID-19 pandemic and months of lockdown, e-commerce has skyrocketed. In 2022 the United States' eCommerce surpassed one trillion dollars (Clark, 2022) and holds roughly an 11.27% annual growth rate (Statista, 2022).
Hi, my name is Megan Wilhoit I am a digital marketing student at Davenport University in Michigan, and I am a consumer. I am lucky enough to come from a generation who grew up with technology as an aid to my life and have it not consume my life. Because of this, I was able to see how retail has changed over the years for the average consumer. I get to see firsthand how new technology is impacting our lives, whether that is an advantage or disadvantage. And as someone who is is wanting to go into digital marketing, getting to experience how digital retail affects consumers and how they shop is super important.
I remember the days when if I couldn’t find something at Meijer, I would go to a different store or find the next best alternative. But now we live in a world where if I don’t see a specific product in store, I go straight to Amazon, or that store's website, and order it to be at my doorstep in one day. Over the last 23 years, I have gotten to witness the fantastic advantages e-shopping has brought to e-consumers. But I have also gotten to see the disadvantages that come with e-shopping for consumers. And when comparing the advantages and disadvantages, it makes me start to wonder how “great” e-shopping really is for the average consumer.
One of the most common advantages I have seen is the convenience e-shopping has brought to consumers. Like I stated before, I remember the days when if something could not be found in-store, you would have to go to a different location or store to find the product or you could maybe order the product online. But now with e-retailing, consumers (like myself) can purchase products from anywhere online. I don’t need to go in person to look for a product. Also, online retailers such as Amazon, have even made the online purchasing environment even easier, using “buy now with one click” options, saving your address and payment information for future purchases, and easily being able to re-purchase goods you have bought in the past. With these benefits, consumers are also not having to put in as much effort and thinking when it comes to buying. These benefits are focused more on non-perishable items, but e-retailers have even been bringing grocery shopping online. With companies such as Shipt, Instacart, or grocery stores' online grocery shopping applications, consumers can do their weekly grocery shopping from the comfort of their homes or during breaks at work. Consumers can even schedule when they want their groceries to be delivered and schedule future grocery shopping for their most common items.
The convenience of e-retailing can also be viewed from a location standpoint. E-retailing can put consumers in contact with brands all across the world, or just help consumers reach retailers who don’t have a physical location near them.
Two personal examples of location convince that come to mind are 1, I live in Grand Rapids, Michigan. I am fortunate enough to live near many malls and shopping centers, but one huge company I don’t have nearby is IKEA. With my current financial situation (being a college student and only working part-time), I cannot afford to purchase expensive furniture (even if it will last me longer). So using IKEA can really help save me money. And with e-retailing, I am actually able to purchase their products without having to drive the two and half hour journey. IKEA even offers a “design” feature on their online store where consumers (such as myself) and design out how furniture will fit and look into space. Without e-retailing and its features I would have to truly envision a space with furniture, measure out the open spaces, write a list of these measurements, and still have to make an almost 3-hour car ride to a store where the products in mind may not even be in stock. E-retailing has been able to completely cut out these inconveniences for consumers online. My other personal experience deals with local businesses. Every year I go to Mackinac Island. On the island, there are so many cute local shops and boutiques, and I love looking through them to get gift ideas. With e-retailing I can now take their business cards home with me and still be able to purchase their products from my hometown of Grand Rapids, instead of having to make the purchase the exact moment I am on the island. E-retailing has made connecting with local businesses online plausible.
Some other advantages e-retailing has brought consumers are the variety of products or “breadth and depth” as well as the personalization of products. Online stores are able to hold a much larger stock of products for consumers than a traditional store can hold. This allows of consumers to have much more variety in styles, sizing, colors, etc. Also with online shopping, personalizing individual products is much easier. Whether that orders a custom-sized couch to fit a specific living area or customing a pair of Nikes to your significant other's favorite colors. Another area of personalization online retail stores has been able to add sections such as “customers also bought”. Consumers can use these features to find other products or brands similar to what they already have purchased while having this feeling of personalization with the company.
The last “common” advantage e-retailing brings to consumers is the pricing and the ease of product comparisons. Pricing has been found to be cheaper through online retailers because “online retailers may have fewer overhead costs” (Kelly and Baker, 2022), as well as the ease of finding coupon codes and extra sales. Also with the ease of e-retailing consumers can easily compare prices of specific products on different websites to see which site is going to give them the best deal. The same thing goes for products. For me when I think of when I want to buy a dress for a more formal occasion. I can now use the Internet to not only find different brands but also compare their prices, reviews, and style options before making my final purchase. There are also even websites and apps that will compare prices for items for the consumer. The most common occurrence of this I think is comparing airline prices through travel agencies such as Trivago and Google itself.
Although e-retailing has brought consumers so many amazing advantages and conveniences, e-retailing also brings consumers some disadvantages.
One common disadvantage is the lack of security and the fear consumers feel about their information being stolen. For major brands online stores, consumers may feel more comfortable inputting their information, but for smaller or newer brands consumers may have a fear of having their information stolen. And if businesses do not input proper safety measures for this secure information, consumers' personal information can be stolen they will no longer want to shop from that specific e-retail store. I have never had my information stolen through online retail stores, but I am extra careful of what websites I input this information just for extra precaution. Another large disadvantage consumers face with online shopping is the lack of personal interaction. This social interaction can help consumers build loyalty to a brand. I also know from personal experience I really enjoy the interaction in traditional retail stores so I can receive a second opinion from “the expert”, and when purchasing more expensive items such as furniture, it is nice to get that expert opinion and see what they have to offer and if they can make any recommendations, and this cannot be done easily through e-retailing.
Some other disadvantages that customers face with e-retailing (and I have personally experienced) are delivery times can be extremely long or customers have to pay extra money to have products delivered sooner, issues with online refunds, and not being able to actually use our five senses to buy products on the e-retail store.
Customer reviews are one feature of online retailing that I have seen to be an advantage AND a disadvantage for customers. As an advantage, it gives customers a better idea of how products look (with real-life customer images), how materials hold up, and overall how other customers like the product. This can help influence a customer's purchase decision. From my experience, I always read customer reviews before an online purchase now, and if I read any bad reviews I either don’t purchase at all or I have to really think about if I want to make this risky purchase. But I also view customer reviews as a disadvantage sometimes. For starters, some products can have really mixed reviews and it doesn’t help a customer in determining if they want to purchase the product. But also today brands use “influencer marketing” so much more, they pay “influencers” to talk good about their products and promote them, and will even give out sales codes for the influencer's audience to use. With this, it’s hard to tell what reviews are based on personal experience or if they're just being paid to leave good reviews. One example of this that I have seen is with the Beis Weekender Bag/Tote. This product was heavily advertised on TikTok over the last 6 months or so. Every influencer was raving about it and calling it “the best travel bag ever”. Then the average consumer started buying this bag but realized this bag sucked for travel (especially flying). So through these “deceiving” reviews, consumers wasted their money on a product that doesn't actually do its job and this reflects poorly on the brand itself.
References
Clark, D. (2022, June 14). » US Ecommerce Will Cross $1 Trillion in 2022 eMarketer Newsroom. Insider Intelligence. Retrieved January 18, 2023, from https://www.insiderintelligence.com/newsroom/index.php/us-ecommerce-will-cross-1-trillion-in-2022/
Eleonora Pantano, Bang Nguyen, Charles Dennis, & Sabine Gerlach. (2017). Internet Retailing and Future Perspectives: Vol. Second edition. Routledge.
Kelly, R. (2022, November 8). Is Shopping Online Really Cheaper? The Balance. Retrieved January 18, 2023, from https://www.thebalancemoney.com/is-shopping-online-really-cheaper-939778Statista. (2022). eCommerce - United States. Statista. Retrieved January 18, 2023, from https://www.statista.com/outlook/dmo/ecommerce/united-states#key-players
